179290.KQ WACC - Weighted Average Cost of Capital
The WACC of MITech Co Ltd (179290.KQ) is 7.2%.
| Range | Selected | |
| Cost of equity | 6.3% - 8.2% | 7.25% |
| Tax rate | 15.6% - 15.7% | 15.65% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.3% - 8.2% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 3.1% | 3.6% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.55 | 0.6 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 8.2% |
| Tax rate | 15.6% | 15.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.3% | 8.2% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 179290.KQ | MITech Co Ltd | 0 | 0.36 | 0.36 |
| 041920.KQ | Mediana Co Ltd | 0 | 0.17 | 0.17 |
| 058110.KQ | Mek ICS Co Ltd | 0.46 | -0.01 | -0.01 |
| 104540.KQ | Corentec Co Ltd | 0.7 | 0.71 | 0.45 |
| 122310.KQ | Genoray Co Ltd | 0.35 | 0.38 | 0.29 |
| 219750.KQ | GTG Wellness Co Ltd | 0.14 | -0.11 | -0.1 |
| 258830.KQ | Sejong Medical Co Ltd | 1.7 | 1.22 | 0.5 |
| 263690.KQ | DRGem Corp | 0.25 | 0.71 | 0.59 |
| 302550.KQ | Remed Co Ltd | 0.09 | 0.43 | 0.4 |
| 305090.KQ | Micro Digital Co Ltd | 0.08 | 0.44 | 0.42 |
| Low | High | |
| Unlevered beta | 0.33 | 0.41 |
| Relevered beta | 0.33 | 0.4 |
| Adjusted relevered beta | 0.55 | 0.6 |
179290.KQ's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 179290.KQ:
cost_of_equity (7.25%) = risk_free_rate (3.35%) + equity_risk_premium (6.30%) * adjusted_beta (0.55) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.